Hey guys, I've made some major financial changes this past year. I credit MMM and this blog for most of it! I've gone from a -$54k net worth to a +$12k since March! Anyways, I have a specific question about a recent real estate project I've embarked on. I need some advice from some senior real estate Mustachians.
I recently bought a 3bd/2bath house and converted the basement into an apartment (in MMM fashion by doing the work myself :)). I adding another bedroom and bath, which now I live in. I have renters above me paying $1550 a month, which includes all utilities. With all my expenses (mortgage, taxes, insurance, utilities) totaling roughly $1552 a month (-$20), was this still a good move? In essence I'm paying $20 a month to cover my housing costs. If I decide to move out and rent both apartments, I'd be cash flow positive $750 which is one of the factors I used to base my purchasing decision on.
By doing all of this, I'm making huge strides towards ER, but I wanted to see if anyone sees any holes in my plan? How obtainable is it have a duplex or two family that will make you money if you live in one of the apartments?
Thanks for your help!
- HH